Toronto — Junior potash miner MagIndustries Corp. said Nov. 27 that it has provided notice to Ameropa AG of its intention to terminate the marketing agreements it previously entered into with Ameropa to market all of the production of potash during Phase 1 and Phase 2 of the company’s Mengo potash project. Mag said pursuant to the terms of the marketing agreements the company has the right to terminate the agreements as a result of the change of control, which occurred in July 2011 whereby Chinese-owned Evergreen Resources Holding (BVI) Ltd. acquired approximately 77.6 percent of the common shares of Mag. The termination will become effective 180 days following notice of termination, and the company estimates no payments will be required to be made in connection with the termination. Mag says it has determined that it is in its commercial interest to have full flexibility over the marketing of future potash production and will be developing a new distribution strategy to be implemented before the start of production.
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